Marginal note:Extension of time by Minister

• 196. (1) If no objection to an assessment is filed under section 195 within the time limited under this Act, a person may make an application to the Minister to extend the time for filing a notice of objection and the Minister may grant the application.

• Marginal note:Contents of application

  (2) An application must set out the reasons why the notice of objection was not filed within the time limited under this Act for doing so.

• Marginal note:How application made

  (3) An application must be made by delivering or mailing to the Chief of Appeals in a Tax Services Office or Taxation Centre of the Agency the application accompanied by a copy of the notice of objection.

• Marginal note:Defect in application

  (4) The Minister may accept an application even though it was not made in accordance with subsection (3).

• Marginal note:Duties of Minister

  (5) On receipt of an application, the Minister shall, without delay, consider the application and grant or refuse it, and shall notify the person of the decision by registered or certified mail.

• Marginal note:Date of objection if application granted

  (6) If an application is granted, the notice of objection is deemed to have been filed on the day of the decision of the Minister.

• Marginal note:Conditions — grant of application

  (7) No application shall be granted under this section unless

  • (a) the application is made within one year after the expiry of the time limited under this Act for objecting; and

  • (b) the person demonstrates that

    • (i) within the time limited under this Act for objecting, the person

      • (A) was unable to act or to give a mandate to act in their name, and

      • (B) had a bona fide intention to object to the assessment,

    • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted it to be made.

Appeal

Marginal note:Extension of time by Tax Court

• 197. (1) A person who has made an application under section 196 may apply to the Tax Court to have the application granted after either

  • (a) the Minister has refused the application; or

  • (b) 90 days have elapsed after the application was made and the Minister has not notified the person of the Minister’s decision.

• Marginal note:When application may not be made

  (2) No application may be made after the expiry of 30 days after the decision referred to in subsection 196(5) was mailed to the person.

• Marginal note:How application made

  (3) An application must be made by filing in the Registry of the Tax Court, in accordance with the Tax Court of Canada Act, three copies of the documents delivered or mailed under subsection 196(3).

• Marginal note:Copy to the Commissioner

  (4) The Tax Court must send a copy of the application to the Commissioner.

• Marginal note:Powers of Court

  (5) The Tax Court may dispose of an application by dismissing or granting it and, in granting it, the Court may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order.

• Marginal note:When application to be granted

  (6) No application shall be granted under this section unless

  • (a) the application under subsection 196(1) was made within one year after the expiry of the time limited under this Act for objecting; and

  • (b) the person demonstrates that

    • (i) within the time limited under this Act for objecting, the person

      • (A) was unable to act or to give a mandate to act in their name, and

      • (B) had a bona fide intention to object to the assessment,

    • (ii) given the reasons set out in the application under this section and the circumstances of the case, it would be just and equitable to grant the application, and

    • (iii) the application under subsection 196(1) was made as soon as circumstances permitted it to be made.

Marginal note:Appeal to Tax Court

• 198. (1) Subject to subsection (2), a person who has filed a notice of objection to an assessment may appeal to the Tax Court to have the assessment vacated or a reassessment made after

  • (a) the Minister has confirmed the assessment or has reassessed; or

  • (b) 180 days have elapsed after the filing of the notice of objection and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has reassessed.

• Marginal note:No appeal

  (2) No appeal under subsection (1) may be instituted after the expiry of 90 days after notice that the Minister has reassessed or confirmed the assessment is sent to the person under subsection 195(10).

• Marginal note:Amendment of appeal

  (3) The Tax Court may, on any terms that it sees fit, authorize a person who has instituted an appeal in respect of a matter to amend the appeal to include any further assessment in respect of the matter that the person is entitled under this section to appeal.

Marginal note:Extension of time to appeal

• 199. (1) If no appeal to the Tax Court under section 198 has been instituted within the time limited by that section for doing so, a person may make an application to the Tax Court for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose any terms that it considers just.

• Marginal note:Contents of application

  (2) An application must set out the reasons why the appeal was not instituted within the time limited under section 198 for doing so.

• Marginal note:How application made

  (3) An application must be made by filing in the Registry of the Tax Court, in accordance with the Tax Court of Canada Act, three copies of the application together with three copies of the notice of appeal.

• Marginal note:Copy to Deputy Attorney General of Canada

  (4) The Tax Court must send a copy of the application to the office of the Deputy Attorney General of Canada.

• Marginal note:When order to be made

  (5) No order shall be made under this section unless

  • (a) the application is made within one year after the expiry of the time limited under section 198 for appealing; and

  • (b) the person demonstrates that

    • (i) within the time limited under section 198 for appealing, the person

      • (A) was unable to act or to give a mandate to act in their name, and

      • (B) had a bona fide intention to appeal,

    • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application,

    • (iii) the application was made as soon as circumstances permitted it to be made, and

    • (iv) there are reasonable grounds for appealing from the assessment.

Marginal note:Limitation on appeals to the Tax Court

• 200. (1) Despite section 198, if a person has filed a notice of objection to an assessment, the person may appeal to the Tax Court to have the assessment vacated, or a reassessment made, only with respect to

  • (a) an issue in respect of which the person has complied with subsection 195(2) in the notice and only with respect to the relief sought in respect of the issue as specified by the person in the notice; or

  • (b) an issue described in subsection 195(5) if the person was not required to file a notice of objection to the assessment that gave rise to the issue.

• Marginal note:No appeal if waiver

  (2) Despite section 198, a person may not appeal to the Tax Court to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by the person.

Marginal note:Institution of appeals

201. An appeal to the Tax Court under this Act shall be instituted in accordance with the Tax Court of Canada Act.

Marginal note:Notice to the Commissioner

202. If an appeal is made to the Tax Court under section 18.3001 of the Tax Court of Canada Act, the Court shall immediately send a copy of the notice of appeal to the office of the Commissioner.

Marginal note:Disposition of appeal

203. The Tax Court may dispose of an appeal from an assessment by

• (a) dismissing it; or

• (b) allowing it and

  • (i) vacating the assessment, or

  • (ii) referring the assessment back to the Minister for reconsideration and reassessment.

Marginal note:References to Tax Court

• 204. (1) If the Minister and another person agree in writing that a question arising under this Act, in respect of any assessment or proposed assessment, should be determined by the Tax Court, that question shall be determined by that Court.

• Marginal note:Time during consideration not to count

  (2) For the purpose of making an assessment of a person who agreed in writing to the determination of a question, filing a notice of objection to an assessment or instituting an appeal from an assessment, the time between the day on which proceedings are instituted in the Tax Court to have a question determined and the day on which the question is finally determined shall not be counted in the computation of

  • (a) the four-year periods referred to in section 191;

  • (b) the period within which a notice of objection to an assessment may be filed under section 195; or

  • (c) the period within which an appeal may be instituted under section 198.

Marginal note:Reference of common questions to Tax Court

• 205. (1) If the Minister is of the opinion that a question arising out of one and the same transaction or occurrence or series of transactions or occurrences is common to assessments or proposed assessments in respect of two or more persons, the Minister may apply to the Tax Court for a determination of the question.

• Marginal note:Contents of application

  (2) An application shall set out

  • (a) the question in respect of which the Minister requests a determination;

  • (b) the names of the persons that the Minister seeks to have bound by the determination of the question; and

  • (c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of each person named in the application.

• Marginal note:Service

  (3) A copy of the application shall be served by the Minister on each of the persons named in it and on any other person who, in the opinion of the Tax Court, is likely to be affected by the determination of the question.

• Marginal note:Determination by Tax Court of question

  (4) If the Tax Court is satisfied that a determination of a question set out in an application will affect assessments or proposed assessments in respect of two or more persons who have been served with a copy of the application and who are named in an order of the Tax Court under this subsection, it may

  • (a) if none of the persons so named has appealed from such an assessment, proceed to determine the question in any manner that it considers appropriate; or

  • (b) if one or more of the persons so named has or have appealed, make any order joining a party or parties to that or those appeals that it considers appropriate and proceed to determine the question.

• Marginal note:Determination final and conclusive

  (5) Subject to subsection (6), if a question set out in an application is determined by the Tax Court, the determination is final and conclusive for the purposes of any assessments of persons named by the Court under subsection (4).

• Marginal note:Appeal

  (6) If a question set out in an application is determined by the Tax Court, the Minister or any of the persons who have been served with a copy of the application and who are named in an order of the Court under subsection (4) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Court Act, as they relate to appeals from or applications for judicial review of decisions of the Tax Court, appeal from the determination.

• Marginal note:Parties to appeal

  (7) The parties who are bound by a determination are parties to any appeal from the determination.

• Marginal note:Time during consideration not counted

  (8) For the purpose of making an assessment of the person, filing a notice of objection to an assessment or instituting an appeal from an assessment, the periods described in subsection (9) shall not be counted in the computation of

  • (a) the four-year periods referred to in section 191;

  • (b) the period within which a notice of objection to an assessment may be filed under section 195; or

  • (c) the period within which an appeal may be instituted under section 198.

• Marginal note:Excluded periods

  (9) The period that is not to be counted in the computation of the periods described in paragraphs (8)(a) to (c) is the time between the day on which an application that is made under this section is served on a person under subsection (3) and

  • (a) in the case of a person named in an order of the Tax Court under subsection (4), the day on which the determination becomes final and conclusive and not subject to any appeal; or

  • (b) in the case of any other person, the day on which the person is served with notice that the person has not been named in an order of the Tax Court under subsection (4).